Gold futures soared above $2700 an ounce, adding to recent gains despite firm US dollar index. The recent Fed minutes have hinted at a cautious approach to easing amid inflation worries, propelling the US dollar index above 109 ' near a two year high. However, Gold has been gaining amid sustained geopolitical worries and signs of strong demand in the year gone by. The World Gold Council revealed the first inflows into physically-backed gold ETFs in four years, fuelled by Asian demand. North American funds posted their first annual inflow since 2020, while European outflows tapered. World Gold Council or WGC stated that global Gold ETFs booked their first annual inflow (US$3.4bn) in four years, and in December recorded US$778mn in inflows, led by Asia and Europe. Global gold ETF inflows pushed total AUM to a record high US$271bn, while holdings remained relatively unchanged (3,219t). Global gold trading volumes fell in December but 2024 saw daily trading volumes increase 39% y/y. On the MCX, the benchmark futures broke above Rs 78000 per 10 grams mark amid supportive global cues. A sharp tumble in Indian Rupee also boosted local prices.

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